The second and third generation touches have bluetooth functionality. You need at least the 3.0 software to unlock it on the second generation. You will be able to use BT headphones, as I do it every day.

** The iPod touch 2G has a built-in Broadcom BCM4325 "Bluetooth" chip that provides the Nike + iPod Sport Kit support. It does not otherwise support Bluetooth connectivity.

Yes, it does support other connectivity. You need to have at least 3.0 software installed to unlock the bluetooth. Once 3.0 is installed you can go to \settings\general and there you will have the bluetooth section to add devices. I use bluetooth headphones every day.